The balance sheet is useful for analysing all of the following except
A)liquidity.
B)solvency.
C)profitability.
D)financial flexibility.

Question

Quizplus · Accepted Answer

The balance sheet provides information on a company's assets, liabilities, and equity at a specific point in time. It is useful for assessing a company's liquidity (ability to meet short-term obligations), solvency (ability to meet long-term obligations), financial flexibility (ability to adjust to changing circumstances), and overall financial position. However, it does not directly provide information on profitability (which is found on the income statement).

The Balance Sheet Is Useful for Analysing All of the Following